Flashcards in Week 4- Measuring nation's income problem set Deck (21):
Inflation: When economy's overall price is____
Inclusion in the investment component of GDP: Spending on___
New business equipment such as power tools but not spending on stocks and bonds.
Real GDP includes___
yearly production of final goods valued at constant prices.
Recession occurs when___
real GDP declines for 2 consecutive quarters.
Transfer payment is a form of___
gov’t spending that is not made in exchange for a currently produced goods.
Department of Commerce computes US GDP___
every 3 months.
GDP + income earned by US citizens abroad – income that foreign citizens earned in US.
o Value of all goods produced w/I a country
o Including foreigners working in US; excluding production by US residents by foreign countries.
o Used to monitor performance of overall economy
In 2009, consumption
represented 70% of GDP.
Nominal GDP values production at___
Real GDP values production at___
Gov’t purchases include spending on goods by___
federal, state, and local gov’t.
In a Simple circular flow diagram, firms use money they get from sale to___
pay workers, rent, and firm owners.
Basic tool of supply and demand are___
central to macroeconomics analysis as well as microeconomic analysis.
When studying changes in economy over time, economists want to study___
In Simple Circular flow diagram, household buy goods w/ income they get from___
wages, rents, and profits.
National income measures the total income of____
a nation’s permanent residents in production of goods.
Inflation rate measures the____
% change in price level from 1 period to another.
Depreciation is the____
consumption of fixed capital.
Change in GDP deflator reflects___
only changes in prices.